Taboola Raises Profit Outlook Despite Lowering Revenue Guidance
The advertising technology company reported a second-quarter net income of $4.3 million, reversing a loss of $4.3 million a year earlier.
Taboola.com (TBLA), the advertising technology company, reported second-quarter net income of $4.3 million. The result marks a turnaround from a net loss of $4.3 million in the same period last year.
Financial results for the quarter showed a shift toward margin expansion despite a slowdown in top-line momentum. Revenue reached $476.8 million, an increase of 2.4% year-over-year. This growth rate represented a deceleration from the 9.1% year-over-year increase recorded in the first quarter.
Profitability metrics showed a recovery from earlier in the year. Adjusted EBITDA for the quarter was $55.5 million, up 22.8% year-over-year. This performance reversed a 25.7% year-over-year decline seen in the first quarter. Adjusted EBITDA margins expanded to 28.8%, up from 26.2% in the prior-year quarter and 15.9% in the first quarter of 2024.
Ex-TAC Gross Profit grew 11.8% year-over-year to $192.4 million. This growth slightly accelerated from the 10.8% year-over-year increase reported in the first quarter. Free cash flow decreased to $17.3 million from $34.2 million in the second quarter of 2023.
The company implemented a workforce reduction in April 2024, which resulted in $5.97 million in expenses for the three months ended June 30. Taboola also recorded a $12.169 million write-off of publisher prepayments during the second quarter.
Taboola lowered its full-year 2024 revenue guidance to a range of $1,930 million to $1,956 million, down from the previous range of $2,006 million to $2,062 million.
Despite the lower revenue outlook, the company raised its full-year 2024 guidance for ex-TAC Gross Profit to between $772 million and $783 million, up from the $760 million to $781 million range provided in the first quarter. Adjusted EBITDA guidance for the year was also increased to $228 million to $240 million, compared to the prior range of $222 million to $240 million.